The Summer Stock Market Crash: Where Do We Go From Here?

The Wall Street spin cycle continues.

August has indeed been busy and lest you were sunning your buns on the beach, there has been a slew of movement in the global financial sphere. Let's take a moment to reflect on where we've been as we navigate the probability spectrum of where we're going.

Revisiting the Transaction Tax, August 19. 2011""There is a healthy level of computer driven programs where the market can "legally" drive without being dangerous to others."

Heading into the weekend, those three words above -- "financial," "market" and "fatigue" -- seem to be manifesting in kind. And you know what? It's not your fault!

As I write, the bulls are making a noble effort to establish a "higher low" in the S&P into the weekend so they can, at the very least, claim the near-term technical battle in the context of the broader war.

The bears, for their part, have one word for you -- banks -- and will offer that until they find a bid, the tape is working off the oversold condition as a function of time rather than price. Deutsche Bank (DB), Barclays (BCS), Bank America (BAC), JPMorgan (JPM), Citigroup (C), Wells Fargo (WFC) and Goldman Sachs (GS) remain viable tells in that regard, as demonstrated in the chart below.

There are two sides to every trade; see them both, and respect risk yet unforeseen. We're at a critical juncture, not only for the market but for the world at large, and this is the time to get long lucidity and short noise -- in size --until we find our way to better days.